The crypto currency community is in distress for the past few weeks. Understandably so, as prices continue to plummet, and mining becomes less and less profitable.
People who mine Bitcoin won’t be worrying more than they used to, as the price of Bitcoin has always been up and down on a daily basis.
When it comes to alternate crypto currencies however, there are a lot of people who mine in order to get some extra cash each month, and even that is becoming very hard for a lot of people.
If you take a look at the mining profitability calculators , you will see that at good times, you might be able to make 5-6$ a day , if you have around 1.5 Mhash/s . Subtract your electricity costs, and for a lot of people, you’re looking at a net profit of maybe 3.5 dollars a day.
Multiple that by 30 days, and you still have 100$, that’s true. And 100$ for not putting in much effort , isn’t all that bad. But it isn’t all that great either.
Besides electricity costs, mining also brings maintenance with it, and worst case scenario, replacing broken parts, which is never fun, nor cheap.
“Scrypt mining is dead” is one of the sentences I have heard multiple times each day for the past two or three weeks.
“Scrypt ASICs will take over and put the little guys with GPU miners out of business” is another of those amazing quotes, which are unfortunately, partially true.
People do need to keep in mind that there is no Scrypt ASIC out there yet in people’s hands. We won’t see those for a couple of months, but when they do get released, and assuming they work as advertised, things will definitely change.
A lot of people are also moving away from GPU’s already, and switching over to dual-miners, such as the GridSeed machines, which can mine both Bitcoin & Scrypt at the same time, or just Scrypto as half the speed of a GPU for only 7 watts of electricity usage.
Taking all of this into account, the GPU era of mining isn’t over yet though. There are different mining algorithms out there, where GPU’s will still thrive for months, if not years to come.
Scrypt-Jane, Scrypt-N, X11, SHA-3 Keccak,….. I’m just naming a few options here, but I’m sure we will see a few more mining algorithms along the way.
GPU mining isn’t dead, nor will it be for some time to come. Mining has become harder to make a profit from at the moment, but it can still be done.
Gone are the days if simply pointing your miner at a multipool & hash away happily, getting paid in Bitcoin every 24 hours along the way.
We are an innovative bunch, so I’m sure there will be more uses for GPU’s in regards to mining. Don’t give up so easily, this’ll sort itself out.